Apple to begin preliminary 'iPhone 5S' builds in March for June/July launch - report

Posted:
in iPhone edited January 2014
Apple will begin preliminary builds of the successor to the iPhone 5 in March, setting up for an earlier-than-expected debut in June or July, according to a new report.

Jefferies analyst Peter Misek said in a note to investors this week that two future iPhone prototypes are currently testing. At least one of these is said to be a so-called "iPhone 5S," while the other could be Apple's rumored low-cost iPhone.

Misek previously predicted in December that Apple will launch an incremental upgrade to the iPhone 5 this summer. He also believes the company's next-generation iPhone, referred to as an "iPhone 6," will sport a larger 4.8-inch display.

iPhones


As word of the "iPhone 5S" production begins to spread, Misek expects there to be a slight slowing of demand for the iPhone 5.

He expects Apple to sell 44 million iPhones in the current March quarter ? a number he noted is "still well above" recent concerns that shipments might be in the mid-30-million range.

Like some other analysts, Misek believes an apparent decline in iPhone 5 component orders from Apple is not related to significantly reduced demand for the popular handset. Instead, he believes the order cuts are related to three factors:
  • An assembly bottleneck that caused component inventories to rise in the holiday quarter.
  • Planning for preliminary production of the next iPhone in March.
  • Demand may be either in line or "slightly below optimistic expectations," Misek believes.
While Misek expects Apple's next iPhone to launch sooner than expected in the June-July timeframe, he also believes Apple is separately planning a low-cost iPhone that would be geared toward emerging markets like China. Such a device may already have been greenlit, he said.

"Similar to the iPad mini, we expect a concentrated low-cost iPhone rather than a 'cheap' one," he said. "Likely specs: polycarbonate case with 4" non-Retina display and no LTE."

In his view, a less expensive iPhone would increase Apple's smartphone market share, but would also decrease the company's gross margins. He does not expect the rumored product to have much of an effect on the company's earnings per share.
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Comments

  • Reply 1 of 78


    Why would they bother, when the iPhone 5 is selling so poorly¡ They may as well give up on the iPhone altogether¡

  • Reply 2 of 78

    Quote:

    Originally Posted by Tallest Skil View Post


    Why would they bother, when the iPhone 5 is selling so poorly¡ They may as well give up on the iPhone altogether¡



     


    Doesn't the annoying sarcasm ever get old for you and every other member who constantly does it? 

  • Reply 3 of 78
    @Mac Daddy: doesn't the evidence suggest otherwise? I think your question was answered before you asked it.

    I don't find it terribly annoying. Sometimes it can even be pretty clever. Almost entertaining.


    Meanwhile, try not to let it bother you. Don't worry, be happy.
  • Reply 4 of 78
    He says Apple is testing 2 prototypes: A cheap 4" iPhone and an incremental upgrade to the iPhone 5 (becoming iPhone 5s). Then he goes on to mention the iPhone 6 with a 4.8" screen. So they're testing 2 prototypes or 3?

    I'm pretty sure the iPhone 5s will retain the exact same size and shape as the iPhone 5. Doesn't Apple usually retain the same size/shape for 2 generations? So then basically he thinks Apple will release the cheap phone and the 5s this summer, then the 6 at the same time or in the fall?

    I don't see that happening.
  • Reply 5 of 78


    Originally Posted by Mac-Daddy View Post

    Doesn't the annoying sarcasm ever get old for you and every other member who constantly does it? 


     


    We do it so that the people who actually "believe" (either because they do or they're paid to) these things don't post their idiotic ideas. It's like how you'll keep your house clean even if you don't have an infestation of any sort. Preventative posting.

  • Reply 6 of 78
    jfc1138jfc1138 Posts: 3,090member
    Perhaps one of them is a China Mobile compatible?

    If Cook's visit was whiff that'd be too bad.
  • Reply 7 of 78
    jragostajragosta Posts: 10,473member
    OK. So now all the people who used to complain that Apple took too long between upgrades can start arguing that Apple must be doing poorly because they're now forced to upgrade their products more frequently. Another excuse to drive the stock down.
  • Reply 8 of 78
    rob53rob53 Posts: 1,900member
    And Peter knows these things because.....

    I don't remember this many rumors or "knowledgable" information happening while Jobs was still alive. Is this because he would have gone after them with a hot poker or because analysts just don't care anymore what kind of garbage they spew.

    I highly doubt he got this information from Apple or even trusted Apple parts suppliers. Again, where's the disclaimer listing whether he has AAPL stocks? Where is the SEC when all these stock manipulation rumors just won't quit?
  • Reply 9 of 78
    solipsismxsolipsismx Posts: 19,566member
    With the iPhone being the flagship device it does make sense to launch it before other products. It certainly doesn't make sense to launch the iPods, iPhone and iPads all at the same time. I could see the iPhone moving back to Summer with the iPods and iPads being released for the Holidays. However that would mean there is a opening in the Spring. I think we might see a new product category arrive this year to fill that gap. A new Mac Pro, Apple Display and AirPort routers won't cut it.
  • Reply 10 of 78
    andysolandysol Posts: 2,506member


    That wouldn't be a bad cycle.  Incremental every summer and big one every fall.  But trying to nail down when Apple does anything is near impossible.  They fooled us with iPods, iPhones, iPads, Macs.... all in the last 2 years its all been all over the map.  When you think iPads are every year, they arent.  When iPhones come every Summer, they push to the fall.  And when iPods get updated every fall, they skip a whole year.


     


    Please, analysts... spare us.  A 4.8" iPhone?  I'd be ok with it... but seriously.....

  • Reply 11 of 78
    andysolandysol Posts: 2,506member

    Quote:

    Originally Posted by rob53 View Post



    I don't remember this many rumors or "knowledgable" information happening while Jobs was still alive.


    I do.  Nothing has changed.

  • Reply 12 of 78
    19831983 Posts: 1,081member
    The smartphone/tablet market is a very hotly contested product category, so the technological pace is accelerating with everybody trying to one up each other. Even though Apple is seemingly doing well, it has to keep up, there-for the need for bi-annual product updates.

    Oh and didn't Mr Schiller put to bed any rumour's of a cheaper iPhone already? That particular subject seems to be more a case of wishful thinking on the analysts part rather than an imminent reality - we'll see...
  • Reply 13 of 78
    jungmarkjungmark Posts: 6,548member


    more stock manipulation reports: new iphone heading for june debut = wait for the new iphone = lower sales metrics for qtrs ahead of new iphone release = lower stock price = buy for myself = change outlook higher = sell at higher price = retire with proceeds.

  • Reply 14 of 78


    Here's a question - how do they expect an iPhone with similar build specs to the iPhone 3GS (non retina and plastic backed) to be in the "sweet spot" of $150-$200?  Was the 3GS  $200?


     


    Uh, no. 


     


    EDIT: This could have been posted on the other article mentioning the 3GS but it fits here, too.

  • Reply 15 of 78
    andysolandysol Posts: 2,506member

    Quote:

    Originally Posted by allenbf View Post


    Here's a question - how do they expect an iPhone with similar build specs to the iPhone 3GS (non retina and plastic backed) to be in the "sweet spot" of $150-$200?  Was the 3GS  $200?


     


    Uh, no. 



    Obviously because the prices of those chips/memory/screen/battery have dropped significantly less than they were almost 4 years ago.  But it still most likely isn't going to happen- and I really hope it doesn't.  I like Apple to be a premier product- not an "every man's" product.


     


    And 1983- Apple said forever theyd never have an iPad.  :)

  • Reply 16 of 78
    Actually june - july launch makes more sense than september launch, fall is too late and basically leaves most of the year to the competitors
    Apple for long time used iPod as it's holiday new product line, but since the iPod in decline the iPad is most suited as an iPod replacement for the holiday than an iPhone and I think Apple realized that, hence the surprising iPad 4 launch timing.
    Getting a new iPad, iPad mini, iPod and iPhone released together is too much even for Apple, moving iPhone to June makes more sense.
    Mac upgrades largely depends on new processors from intel which is outside Apple control unlike the ARM version Apple make.
    If Apple launched an earlier than expected iPhone is not because iPhone 5 is a flop or they will do 2 iPhones per year but because it is logical.
  • Reply 17 of 78

    Quote:

    Originally Posted by Andysol View Post


    Obviously because the prices of those chips/memory/screen/battery have dropped significantly less than they were almost 4 years ago.  But it still most likely isn't going to happen- and I really hope it doesn't.  I like Apple to be a premier product- not an "every man's" product.


     


    And 1983- Apple said forever theyd never have an iPad.  :)



     


    Agree on costs dropping, but if the rumor is true, still wouldn't see an iPhone at those prices.  Like you, I have my doubts on it's existence anyway.

  • Reply 18 of 78
    paxmanpaxman Posts: 4,575member

    Quote:

    Originally Posted by rob53 View Post



    I don't remember this many rumors or "knowledgable" information happening while Jobs was still alive. Is this because he would have gone after them with a hot poker or because analysts just don't care anymore what kind of garbage they spew.


    This is the result of doubling down on secrecy..


     


    But yes, it did happen while SJ was around, too. I think it is very very hard to keep this sort of thing secret when you are as big with so many suppliers, as Apple. That, and the fact that because of Apple's famous secrecy the secrets have attained a value beyond any other news. There is a whole industry based on Apple rumours and leaks.

  • Reply 19 of 78
    @tallest skil it may not of hit their predictions but it still took the samsung g3 and wiped it on the floor.. so not the greatest for apple .. still is better then samsung is done.. plus they want to get back on a cycle of once a year releases.. unlike androids 20 per month
  • Reply 20 of 78


    Originally Posted by jecaron View Post

    …plus they want to get back on a cycle of once a year releases.. unlike androids 20 per month


     


    Do they? They might move to two. I don't like that myself; they don't need it. But they might.

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